LogFAQs > #930970488

blu posted...

The concept of your passive income is enough to pay for your lifestyle.

Technically financial independence is just the concept of having or bringing in enough income without being dependent on an employer or other single source. Passive income is a popular means to financial independence, but hardly the only one. If you maintain enough savings, you don't necessarily need passive income because you're already secure. I've known a lot of people over the years who could easily afford to retire but continue to work because they either enjoy working, get bored easily, or -- in some cases -- just want to spend less time with their spouse or family. They could quit tomorrow and still be set.

Semi-funny story about that. My brother knows a multi-millionaire who still owns and operates a business and is working into his 70s. The guy likes his job, makes a lot of money, and likes spending good chunks of it. Some time ago, his son -- wanting to protect his future inheritance -- apparently got a judge to question the man's intellectual competence and, as I understand it (and assuming that my brother wasn't just bullshitting), the judge apparently put something in place that limits how much the old guy can spend.

And my uncle is a multimillionaire with multiple residences, including some overseas, yet he still works despite not needing the money at this point and gets involved in money-making ventures.

Then, of course, one of my more distant-relations is a 1%er (well, "1%er" kinda understates how much money he makes since it includes people making less than half a million a year; this is a guy who bought a multi-million property in an expensive area, tore it down, then built a bigger residence where it was) but he's still working. I'm not sure what his overall finances look like, but he almost certainly no longer needs to work to support himself.

blu posted...

In July I got that high paying job I've been talking about for the past few years (140k right out of school, hoping to get to 200k within the next two years). And really, it's just not for me. I loved school, residency was alright, but I strongly dislike work. I basically wanted a way out, and found out about early retirement through Mr. Money Mustache and the Mad Fientist.

It basically boils down to just having a high savings rate and putting money into something that makes you money. Most of the community likes low cost index funds like VTSAX because they are completely passive and you can withdraw 4% a year without touching the principal most of the time. Basically an index puts your funds into many companies, like VTSAX holds over 3000 in it now.

How you ever thought about just doing something else that you actually enjoy? >_> Retiring altogether, especially in your 40s, just sounds fucking depressing.
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